US health insurers delivered a strong set of first-quarter earnings, raising hopes that medical costs may finally be stabilising after several years of pressure from elevated healthcare utilisation and higher claims expenses.
The sector has struggled since 2023 as rising medical costs in government-backed health plans weighed heavily on profitability. The S&P managed care index has fallen more than 12% since July 2023 amid concerns over increasing expenses tied to Medicare and Medicaid programs.
